Volkswagen to buy Porsche sports car biz for $11.28 b

Volkswagen to buy Porsche sports car biz for $11.28 b

Germany’s leading weekly magazine wrote that the rival Porsche and Piech clans, which own 100 per cent of Porsche SE votes, will approve the two-stage takeover at a supervisory board meeting on July 23.

Volkswagen would purchase a 49.9 per cent stake in Porsche AG and at a later date acquire the rest, in a deal that would create an integrated automotive group with 10 brands under the leadership of the Wolfsburg-based carmaker.
The sale would help Porsche SE pay off most of its debt, which two sources told Reuters has ballooned to considerably more than 10 billion euros.

Der Spiegel also said embattled Porsche SE and Porsche AG Chief Executive Wendelin Wiedeking is negotiating over a severance package that could total more than 100 million euros. In the meantime, production chief Michael Macht will replace him as head of Porsche AG, the magazine reported.

Asked whether the two families have reached a decision for the July 23 board meeting, Porsche spokesman Anton Hunger said “we have not been informed of one,” adding that the Spiegel report was speculation that the company would not comment on.

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